The e-commerce giant's investment in one-day shipping is eating into its profits. Bartek Sadowski/BloombergAmazon reported a steep decline in third-quarter profits on Thursday as the e-commerce giant continues to invest heavily in one-day shipping. On Thursday, the company’s chief financial officer Brian Olsavsky declined to say in a call with analysts what the company spent on one-day shipping in the third quarter. He went on to acknowledge that one-day shipping was “a big investment” but called it “the right long-term decision for customers.” During the quarter, the company’s shipping costs rose 46% to $9.6 billion from the same period a year earlier. The company projected fourth-quarter sales of between $80 billion and $86.5 billion, which is below analyst estimates of $87.4 billion.

Source: Forbes October 24, 2019 20:33 UTC